Which of the following generates productive efficiency?
A)competition among sellers
B)competition among buyers
C)government inspectors
D)government production rules and regulations

Question

Quizplus · Accepted Answer

Competition among sellers generates productive efficiency because it forces firms to produce at the lowest possible cost and price, improving their productivity and efficiency. Competition among buyers, government inspectors, government production rules, and regulations may also contribute to improving efficiency in their respective ways, but they do not generate productive efficiency as directly as competition among sellers.

Which of the Following Generates Productive Efficiency